Wales faces construction skills shortage, despite fall in demand

By Danny BallPublished On: October 16th, 2026Categories: News, Top Stories

Wales needs to recruit 1,240 additional construction workers a year to meet expected demand, despite a 15% fall in homeowner planning applications over the past two years, according to the Federation of Master Builders (FMB) Cymru.

The figures highlight the challenge facing the Welsh construction sector as it prepares for a potential recovery in home improvement and renovation work.

The industry is already struggling to recruit skilled workers, with the Construction Industry Training Board (CITB) estimating that Wales is losing around 300 construction workers a year rather than expanding its workforce.

FMB Cymru has warned that without action to increase training and apprenticeship opportunities, the skills shortage could constrain future construction activity and efforts to improve the energy efficiency of existing homes.

Renovation demand and workforce pressures

Data from the Planning Portal, which handles 95% of planning applications in England and Wales, shows that homeowner applications in Wales have fallen by 15% over two years. FMB Cymru said this represents the steepest decline across England and Wales.

Despite weaker demand, builders are already finding it difficult to recruit skilled workers. The federation warned that a recovery in homeowner confidence and investment could widen the gap between available labour and the workforce needed to deliver projects.

Ifan Glyn, Director of FMB Cymru, said: “The market is down, particularly here in Wales, yet we already face a shortage of skilled builders. When confidence returns and homeowners start investing again, that shortage will bite even harder.

“If we don’t train people now, we won’t have the workforce to seize the opportunity when recovery comes. Renovation work is the perfect moment to add energy efficiency and retrofit measures, but only if there are skilled people to do it.

“That’s why apprenticeship reform matters. We need a system that works for the small building companies that train so many of our future tradespeople.”

Small builders call for apprenticeship reform

FMB Cymru has highlighted the role of small building firms in training new entrants to the construction industry, arguing that the cost and administrative demands of employing apprentices can be difficult for smaller businesses to manage.

Marc Reardon, President of FMB Cymru, said: “Small builders are the backbone of training in Wales. Most of us learned our trade on site from someone who gave us a chance, and we want to do the same for the next generation. But taking on an apprentice is a big commitment for a small firm, in time, money and paperwork, and right now the system makes that harder than it should be.

“Every apprentice we train today is a skilled tradesperson ready for when the work comes back. If we wait for the recovery before we start training, we’ll already be too late.”

The federation is calling for apprenticeship reform that better supports small construction businesses to recruit and train new workers.

Skills needed for energy-efficient housing upgrades

The shortage could also affect Wales’s efforts to improve the energy performance of its existing housing stock. Renovation projects can provide opportunities to install insulation, upgrade heating systems and introduce other energy-efficiency measures, but these works depend on a supply of appropriately skilled tradespeople.

FMB Cymru warned that delaying workforce development until demand recovers could leave builders without the capacity to deliver both home improvement projects and retrofit work when investment increases.

The federation’s message is that training needs to continue during the current slowdown so that skilled workers are available when homeowner confidence and construction activity improve.